Customer Based Retail Brand Equity (RBE) Dimensions Effect on Retail Brand Equity for OK Supermarket in Bindura

Douglas Chiguvi,Albert Musekiwa,Hope Hogo

doi:10.5539/ijbm.v8n19p45

Abstract

The concept of retail brand equity has become a competitive tool for successful retailers in today’s competitivemarket characterised by increase in demands by customers, increased competition and shrinking disposableincome. Most stores have realised that it is cheaper to retain than to attain new customers through brand equity.This study sought to determine the nature of relationship between retail brand equity dimensions and retail brandequity for OK supermarket in Bindura. OK supermarkets are the biggest retail chain in Zimbabwe by number ofoutlets and market share but with dollarization the country has seen increased interest by big some of the bigplayers in Southern Africa like Pick n Pay and Shoprite. It follows that for OK to maintain its pole position it canno longer afford to do business as usual, brand equity provides a sustainable competitive advantage. A sample of100 respondents was interviewed at the store front. The results revealed that brand awareness, loyalty andperceived quality have significant impact on brand equity. The store managers were urged to increase promotionalactivities, loyalty programs and psychological factors (tangibles and intangibles) so that the firm could increasebrand equity.

Highlights

The concept of retailer brand equity has attracted the attention of marketing practitioners and researchers over the recent years (Arnett et al, 2003; Krammer, 1999; Thompson, 1998)
H3 puts that perceived quality has a positive impact on retail equity .This hypothesis has been supported by the regression analysis (Table 5)
The study has shown that an increase in at least one of the dimensions will lead to proportional increase in brand equity

Summary

Introduction

The concept of retailer brand equity has attracted the attention of marketing practitioners and researchers over the recent years (Arnett et al, 2003; Krammer, 1999; Thompson, 1998). The different dimensions of in store setting such as colour, smell, music, crowding can influence consumer’s perceptions of store ambience These help customers to decide whether or not they visit the store, how greatly they spend time in it, and how much money they spend in it (Grewal et al, 2003).Baker et al (2002) postulate that store environmental factors significantly affect consumer’s perceptions of merchandise (price and quality) and employee service. OK supermarkets have been operating in Zimbabwe since 1942 providing a range of retail products and allied services in response to customer demands. It trades under four brand names: OK stores, Bon Marche’, OK express and OK Mart (okziminvestor, 2012). For example the product range you would find in Bon Mache Borrowdale is targeted to the high income while that you would find in OK Mbare is targeted to low income customers

Results

Discussion

Conclusion